Do Search Engines Read The Anchor Text of NoFollowed Links?

A HighRankings Forum thread asks an interesting question. If I add links to my web page and nofollow them, does Google still read the anchor text of the link and use that in part of how they determine what my page is contextual about.

For example, if I link to Search Engine Land as follows; <a href="http://searchengineland.com/" rel="nofollow">Search News</a> would Google or any other main search engine, take the words "search news" and place that text as being relevant to what this page is about? We know Google won't pass the link value of that link to Search Engine Land, but do we know if Google ignores that text completely?